SCREEN Holdings (7735) Q4 2026 earnings summary

Executive summary

• Net sales for FY2026 were ¥605.7 billion, down 3.1% year-over-year, with operating income at ¥122.5 billion, down 9.7%, and net income at ¥92.0 billion; OP margin was 20.2%.

• Year-end dividend was raised to ¥170 per share, with an annual dividend of ¥293 per share, a record high.

• Sales in China decreased as a percentage of total, while Taiwan's share increased; combined, they account for 60% of sales.

• Despite a moderate global recovery, uncertainty persists due to U.S. trade policies and geopolitical risks, especially in China and the Middle East.

• All segments are expected to achieve steady growth in FY2027, with a focus on advanced packaging and robust WFE investment driven by AI.

Financial highlights

• Ordinary income for FY2026 was ¥124.3 billion, down 10.1% year-over-year.

• Operating cash flow increased to ¥92.7 billion from ¥71.2 billion year-on-year; free cash flow was ¥62.9 billion.

• R&D expenses rose to ¥37.7 billion, CapEx was ¥27.7 billion, and depreciation increased to ¥14.5 billion.

• Net assets increased to ¥486.6 billion, with an equity ratio of 67.4%.

• Gross profit for FY2026 was ¥233.2 billion, with a gross margin of 38.5%.

Outlook and guidance

• FY2027 sales forecast at ¥725.0 billion (+19.7%), operating income at ¥150.0 billion (+22.4%), and net income at ¥110.0 billion (+19.6%).

• Operating margin for FY2027 is forecast at 20.7%.

• Interim and year-end dividends for FY2027 are forecast at ¥60 and ¥115 per share (post-split), totaling ¥175.

• R&D and CapEx for FY2027 both forecast at ¥43 billion, with depreciation at ¥18 billion.

• Growth in the second half of FY2027 expected to be higher, driven by memory and AI-related investments.